Best Open Source Small Business Accounting Software Image

Best Open Source Small Business Accounting Software

Since 1999 Xero has been giving small businesses control of their books by combining all their accounts in one place. Their accounting software is a cloud-based solution that allows you to get on with running your business – from invoicing to banking and payroll, to shipping and sales – all at one place combining your bank, credit card and PayPal accounts.

As small business owners ourselves, we know how difficult it can be to balance the books. We’ve spent years perfecting a cloud-based accounting suite that is easy for small business owners to use. Get all your financial data at your fingertips in real-time anywhere you are using our tools on any of your devices. Our dashboards and smart reporting make tax time a snap.

Skrooge

Skrooge

Key Highlights:

  • Personal finances manager
  • Tailored for Plasma Desktop but compatible with others too
  • Cross-platform (Windows, Linux, and macOS)

Skrooge is one of the most useful personal finances manager by KDE. It is originally tailored for the Plasma Desktop but other desktop environments are compatible.

Supports most of the basic features (reporting, budgeting, etc.) and allows you to work on some pretty big data sets.

Wave

 
A screenshot of the main dashboard in Wave Accounting
The main dashboard in Wave Accounting (Source)

Designed with the small-business owner in mind, Wave—which was acquired by H&R Block for around $400 million in July of 2019—prides itself on its simplicity and ease of use. Its intuitive user interface keeps the most important financial data front and center, accessible immediately after signup via any device with a web browser.

The idea here is that keeping things simple relieves much of the stress associated with accounting software. But don’t be deceived by this bare-bones approach; for a free piece of software, Wave is rich in features. This includes informative user dashboards, unlimited income and expense tracking, and customizable invoicing and sales tax processes.

Other features include:

  • Fast setup
  • Bulk transaction updates
  • Exchange rate conversions
  • PayPal, Shoeboxed, and Etsy integrations
  • Unlimited bank and credit card accounts
  • Bill and invoice reminders

While the accounting app really is free, accepting payments (2.9% + 30 cents per credit transaction, or 1% per bank transaction) and running payroll ($20 per month plus $4 per employee) are paid, optional features.

Wave also appears on our Accounting FrontRunners list for 2021.

GnuCash

GnuCash is an open-source accounting software intended for small businesses with an on-premise deployment. It’s specialized for the finance and software industries. It’s also available as an app for Android devices.

GnuCash Bank Reconciliation Module

A preview of GnuCash’s bank reconciliation module.

Noteworthy Advantages

This program offers various differentiators that set it apart from its competitors.

  • Customization: Obtain options to customize the display style of the register.
  • Financial Statements Import: Import Intuit Quicken QIF files via an assistant. Support open financial exchange (OFX) protocols.
  • Data Storage: Stow data in XML format or a SQL repository with SQLite3, MySQL or PostgreSQL.
  • Check Printing: Print checks in standard formats on common check stocks and create tailored check layouts via a customization graphical user interface (GUI).
  • Mortgage and Loan Repayment Assistant: Have a guided dialogue to initiate loan payments as scheduled transactions.
  • Localization: Obtain internationalized dates and currencies and work with more than 50 languages.

Key Features

Bank Reconciliation

The account reconciliation tool allows users to compare transactions recorded into an account with a bank statement.

Reporting

Showcase financial data with bar charts, pie charts and scatterplots with the reporting element. You may also work with pre-built reports including profit and loss statements, balance sheets and portfolio valuations amongst others. You may adjust report formats and contents accordingly.

Additional Accessories

Despite GnuCash only possessing half of the common features, it has supplementary appliances that can meet your business needs. These extra attributes include:

  • Double-Entry Accounting: Ensure every transaction debits one account and credits the others with an equal amount so the difference between income and expenses accurately aligns with the sum of assets and liabilities.
  • Transaction Scheduling: Formulate recurring transactions and adjust amounts and timelines.
  • Cash Flow Management: Account types, when paired with double entry and equity accounts, allow you to develop reports such as profit and loss and more.
  • Portfolio Management: Update portfolios instantly, track individual stocks and add supplemental pricing sources at regular intervals.
  • Register: Autofill documented transactions, mark transactions as cleared or reconciled and exhibit several accounts on one register.

Limitations

Most ERP solutions have limitations. GnuCash is no exception. These drawbacks include:

  • Lacking multi-user functionalities.
  • Does not include accounts receivable or billing features.
  • Does not offer an app for iOS devices.

 Apache OFBiz

Apache Ofbiz

Key Highlights:

  • ERP & CRM
  • Developer-friendly
  • Powerful Java Web Framework
  • Cross-platform (Linux and macOS)

We’ve already mentioned this in our list of best open source CRM software. Apache OFBiz is an impressive open source solution that incorporates an ERP system and a CRM suite for various types of requirements.

It’s completely free – however, you will have to host it yourself (or just hire someone to do it). In addition to all the basic features needed for accounting software, it lets a developer extend/enhance features easily while being a Java-based web framework.

ERPNext

ERPNext is an extendable ERP that consists of various programs such as HR and payroll, accounting, manufacturing, sales and purchase, CRM, asset management and others. It’s designed for businesses of all sizes and also employs cloud and on-premise deployment. It’s available as an app for iOS and Android devices.

ERPNext Dashboard

An example of ERPNext’s dashboard.

Noteworthy Advantages

ERPNext contains various strengths that help it outdo the alternatives.

  • Journal Entry Template: Permit users to establish and pick a preselected account and options list as they create new journal entries.
  • Payment Terms Template: Gather various payment conditions and add transactions. This template relays to ERPNext to fill in the table in the payment terms schedule portion of the sales or purchase documents.
  • Chart of Accounts Importer: Import chart of accounts, download a template that aligns with the chart and fill out the template efficiently.
  • Payment Order: Manage this internal document to chronicle bulk payments against suppliers and capture various payment requests against vendors.
  • Item Wise Taxation: Leverage this tool for item-wise taxations, create item tax templates and allocate them to an item or item group, and assign legitimacy to tax templates.
  • Loyalty Program: Draft customer loyalty programs, review loyalty points earned on a client’s dashboard and adjust conversion factors, expense accounts and expiry durations via the redemption section.
  • Period Closing Voucher: Detect profits and losses for an accounting period that’s been balanced in the books. Implement a period-closing voucher to set all income and expense accounts to zero after inputting special entries for the existing fiscal year.
  • QuickBooks Migrator: Link ERPNExt with QuickBooks online API, migrate information across both solutions and create an ERPNext account for every QuickBooks tax rate received.
  • Margin: Apply margins to quoted and sales order items automatically if the pricing rules are determined.
  • Asset Value Adjustment: Govern fixed asset values by making alterations if necessary. Purchase or sell an asset and draft all the required documents for it.
  • Localization: Support local standards for every global region, add custom fields and custom reports to support rules in a specific region and handle more than 70 languages.
  • Auto Repeat: Develop particular documents at any given time automatically, establish auto repeat from documents, alert specific contacts through email when repetitive documents are created and review the auto-repeat frequencies.
  • Third-Party Integrations: Access pre-made integrations with third-party solutions including Google Calendar, Plaid, Amazon, Shopify, LDAP, Google Maps, Dropbox and more.

Key Features

Tax Management

This module offers tax withholding categories for most cases by default and you may create more if necessary. You may set which particular tax templates you need for certain sales and purchase transactions with the tax rule extension. This appliance enables you to set a tax category to apply numerous tax rules to a transaction under different considerations. Lastly, if some items have different tax rates from the established tax rate, you may develop separate item tax templates and allocate them to a specific item or item group.

Bank Reconciliation

Synchronize bank statements and entries made within the solution by just pressing “Update Bank Transaction Dates” in the bank reconciliation apparatus. ERPNext has two reconciliation appliances. One is manual reconciliation that permits you to define clearance dates against payment entries, sales invoice payments or journal entries. The other is semi automatic and clears bank transactions against payment entries, sales and purchase invoices payments, journal entries or expense claims. Chronicle bank transactions in ERPNext to reconcile them with current costs and even suggest corresponding payments for an amount that seems to match a selected bank transaction.

Accounting Reports

The reporting module offers an array of different accounting reports. Examples of reports are:

  • General ledger
  • Accounts receivable
  • Accounts payable
  • Tax reports
  • Sales invoice trends
  • Customer credit balances
  • Party wise trial balances
  • Budget variances
  • And more!
Additional Accessories

ERPNext has other accessories worth mentioning to streamline your account practices. These extra capabilities include:

  • Journal Entry: Reverse credit and debit amounts against relevant accounts to reverse journal entries.
  • Sales Invoice: Develop sales invoices from sales orders or deliver orders as well as add items with barcode scanning.
  • Pricing Rules: Institute pricing rules for selling or purchasing items and set date intervals when those pricing rules will take effect.
  • Point of Sales: Join a sales campaign with a point of sale profile to trace total sales against it.
  • Multi-Currency Accounting: Initiate exchange rate revaluations to handle a company’s chart of accounts with various currencies.

Limitations

Like most programs, ERPNext has a few drawbacks. These cons include:

Conclusion

Keep track of money in and out of your business with this beginner-friendly small business accounting software. Learn how to set up and organize records, get in tune with QuickBooks features, and more.

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